'c' form against my company capital goods/fixed assets

gvvlpraju (Querist) 17 October 2014 This query is : Resolved
Dear Gentlemen,

We, M/s. Harshini Motors is the registered company under the A.P. Government Industries act and Authorized dealers of Mytvs all car services and we have been purchased tools and equipment from Tamilnadu State as CST 2% for our regular work operations. The following tools and equipment machineries are installed at our work premises. These items will be purpose of using for produce labor income and as well as the spare parts sales income and both side of our earnings will be tax payable as 14.5% VAT and 12.36% Service tax. Furthermore, without these referred items our work operations are not possible to execute. Please my query is those items are purchased for operations purpose under capital goods/fixed assets and we have request C form at our local commercial tax office but CTO of our region rejecting our request. please i humbly requesting to reply whether we are eligible for c' form or not?

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Anirudh (Expert) 17 October 2014
The CTO is absolutely right in the given fact situation.
The goods purchased in inter-State sale transaction has either to be used in the manufacture (i.e. as raw material) for production of goods or things, or used for re-sale.
In your case, either of the two is not taking place. IN FACT, WHAT YOU ARE DOING IS USING THE PURCHASED ITEMS. THIS IS NOT eligible for grant of C Form.

Rajendra K Goyal (Expert) 17 October 2014
Agree with the expert Anirudh ji.

R K JAIN (Expert) 18 October 2014
Dear, I differ with the view of Mr Anirudh and capital goods purchased by service station must be incorporated in the registration certificate. Spare parts can not be fitted without the help of machinery, therefore, the machinery purchased are for processing of goods for sale. The goods can not be sold without fitting in the vehicle and for that purpose the machinery and tools are basic requirement for processing of goods for sale.

gvvlpraju (Querist) 18 October 2014
Dear Expert : R.K. JAIN, your are right, The goods can not be sold without fitting in the vehicle and for that purpose the machinery and tools are basic requirement for processing of goods for sale. then why CTO is not agreeing the same and telling only not eligible but not giving correct response. shall i can proceed for legal assistance or can i appeal for any penal action against CTO and the department.

R K JAIN (Expert) 18 October 2014
Yes, you should take the clarification from the department and you can appeal the same with the appellate authority after taking the order from the assessing authority.

Anirudh (Expert) 19 October 2014
Wish you all the Bests.

sanjeev kumar goel (Expert) 07 October 2015
I am of same view as of Mr. R K Jain but if you have mentioned these items in your registration certificate as plant and machinery. If these items are incorporated in your registration certificate then CTO can not deny to issue C Forms to you. If you have not mentioned those items in your registration certificate then you can not issue C Form with out addition in registration certificate as items used for business purpose as plant and machinery.